Too big to fail or not big enough to be critical

Posted by Herman | October 20, 2008 | permalink
The “quote du jour”  is by Tom Evslin.
“Nothing should be too big to fail because nothing can be made failure-safe.”
“There’s no question anymore that institutions which are too big to fail are also too big to leave unregulated. [..]  
Those of us who have built complex interactive systems know that nodes which are significantly large compared to the network as a whole pose an outsized risk. The Internet is a triumph of decentralized relatively small nodes, none of which is “too big to fail”. [..]
There is significant question whether any degree of regulation will be sufficient to prevent failure. Nodes fail for unexpected reasons – usually not the ones you’re watching for.” 

An excellent exposé how the illusion of control has more inherent dangers than the acceptance of the limits of control. Read it.

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About Herman

Herman Wagter writes on Dadamotive about facts and figures behind issues that interest him. His work as interim manager and consultant has involved him directly in the impact of hyperconnectivity and sustainability on society. As an independent agent and "mobile warrior" he has experienced the pro's and con's of how organizations and projects can be structured, and what the effects on the final result can be. In his opinion we are entering an era of profound change, driven by these fundamental forces. Following the trends, discovering the fun and debunking the half-truths is a passion he likes to share with others.
Posted in: Human value, Hyperconnectivity.

One Response to Too big to fail or not big enough to be critical

  1. POTUSworld says:
    May 14, 2011 at 19:52

    I watched with great interest, and some dismay, the PBS Need To Know news segment “High Fiber” here in the U.S. After watching the entire segment (on TV, and later again online), I sometimes feel like we Americans are living in a foggy bubble floating aimlessly in slow motion. Having traveled, seen other similar news stories, checked facts and read diverse data from around the world, it is clear too much of America is like a 19th century man dressed in 21st century clothes.

    Our facade and egocentric mindset usually blinds us from the reality of what’s happening globally. The fiber optics information revolution is just the tip of the iceberg that we’re ignoring. We are no longer “Number One” in the things that really matter in this new millennium, like infrastructure, mortality, technology, energy, education and critical thinking. However, we do excel at producing so called reality TV shows — junk food for the brain.

    Being a bit of a history buff, I am basically aware that civilizations have fallen or flourished based on their access to and dissemination of information. Like the early canals of the Netherlands, fiber optics are the newest arteries of technological and cultural advancement. Thank you for contributing some genuine insight and optimism about where we Americans need to generate more “will” (as you noted so precisely) regarding our infrastructure.

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